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NZD / USD fall on over RBNZ dovish
- New Zealand dollar collapses as RBNZ suggests rate cuts
- This echoes the same cautious comment from the Fed and the ECB
- NZD / USD could leave more room for technical panels
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the New Zealand Dollar dropped 1.45%, preparing for the worst performance in a single day since February 6th on aRBNZ rate decision more dovish – even if the change of feeling was expected. The participation rate held at 1.75% was the widely expected result, but the surprising part was that the central bank was turning to a prospect that favors a rate cut rather than a rise.
the Reserve Bank of New Zealand indicated that the risks to the outlook were down, following similar decommissions by its main counterparts in the central bank. The most recent was the dovish from last week fed, who essentially removed the hikes (2) from the table for this year. The RBNZ's concerns were obvious: weaker global growth, reduced national momentum and a moderate business climate.
The cautious transition of the RBNZ has not been well understood in equities. the Nikkei 225 was lower on the ad, down about 0.75% at the time of writing this article. Meanwhile, the anti-risk Japanese yenand to some extent US Dollars, both gathered. At the same time, the pro-risk Australian dollar slashing cautiously lower.
In the future, the risky currency will likely follow the optimism of the market, which could be dictated by the main news flow of the US economy. The rest of the week offers US GDP and Basic ECP which may not meet the expectations of economists. This has been the trend lately, the last example being disappointing consumer confidence over the past 24 hours. Technical signs suspicion of a turn lower in the S & P 500 too.
Reaction of NZD / USD chart in 15 minutes to the RBNZ
Chart created in TradingView
NZD / USD Technical Analysis
The NZD / USD has cleared a rising support line in the near term from the beginning of this month after failing to eliminate a resistance range beyond 0.6918. Looking at the daily chart below, you can see a triple top training. If the pair manages to be below the uptrend line of October, the losses could be even greater. You can follow me on Twitter for the latest updates on the NZD here at @ddubrovskyFX.
Daily chart NZD / USD
Chart created in TradingView
Trading Resources in New Zealand Dollars
— Written by Daniel Dubrovsky, Junior Forex Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
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